The Big Wave Trading market models are currently mixed, following last week’s gains in the market, with the Nasdaq, Nasdaq 100, SP-500, and NYSE all under operational BUY conditions. The DJIA, DJT, and Russell 2000 remain under an operational NEUTRAL signal. Even with the return to an operational BUY mode in some of our models, we continue to be less than impressed with the current move into new all-time highs. Volume is better on this most recent move but the price action of the final hour and the inability to close at the HOD when we do open strong remains an ongoing concern.
However, money is not made by being concerned. Money is made by following your signals and adhering to a disciplined backtested investing methodology. As long as the market trends higher on the intermediate and long-term, like it currently is, despite the choppy action in the indexes we will continue to take new long signals as they trigger. Those new long signals will replace the laggards in our portfolio as we continue to rotate into winners and out of losers as we move higher.
As we enter the new week, we expect the market to continue to rally. However, we will not be surprised if the trading remains choppy in the short to intermediate term. All of the momentum oscillators that we track on all but one of the major market indexes are confirming the current uptrend and none of the oscillators are overbought. The Russell 2000 continues to lag with its momentum oscillators all choppy or in short-term downtrends. If and when these oscillators turn higher, confirming the price action, we should expect the Russell 2000 to join its brothers the Nasdaq and the SP-500 in new all-time high ground.
If this does not happen and our major market indexes begin to turn lower, we will be prepared for that outcome also. You can guarantee that there will never be a day that we will be shocked by any price move that is unexpected. We expect the unexpected and are always ready for it. That is why we carry sell stops on the books on every single position we take. There is not a single trade ever taken at Big Wave Trading that does not come with protection on the downside if our analysis is wrong and the trigger signal fails. When we are wrong, we cut our losses immediately. No questions asked.
We wish you all well in the upcoming week. Great luck, thank you, and aloha from the beautiful island of Maui where our first swell of the summer season is in the books.
TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – DATE OF SIGNAL
VIPS long – +708% – 7/17/13
AGIO long – +113% – 9/24/14
ANAC long – +87% – 1/20/15
PAYC long – +86% – 10/30/14
VDSI long – +80% – 8/4/14
CBPO long – +76% – 10/24/14
SWKS long – +67% – 10/28/14
AFAM long – +59% – 1/8/15
CVTI long – +58% – 11/3/14
GIMO long – +57% – 2/2/15
ESPR long – +55% – 3/9/15
VRX long – +53% – 11/17/14
RUBI long – +51% – 10/29/14
SKX long – +49% – 1/26/15
EA long – +45% – 11/10/14
AVGO long – +41% – 10/28/14
BLUE long – +41% – 2/25/15
PANW long – +41% – 11/10/14
SERV long – +40% – 11/7/14
CNC long – +38% – 1/8/15
TERP long – +37% – 1/16/15
SERV long – +35% – 11/7/14
RCPT long – +35% – 2/20/15
LCI long – +28% – 2/5/15
